The staffing sector does not in fact constitute a single sector. Staffing and recruitment services are offered to a variety of different businesses within a wide range of specialist disciplines.
However, all organisations that provide staffing services must work within a specific set of regulations. It is crucial that companies have a thorough knowledge of these regulations. The consequences of the choices they make are wide-ranging, not only for those who provide staffing and recruitment services, but also for their clients.
This legal field is interpreted in the light of EU/EEA law which is under continuous development. Laws that applied yesterday need not necessarily apply tomorrow.
Projure's lawyers have a comprehensive knowledge not only of the regulatory framework, but also of contract drafting approaches and commercial conditions in the staffing sector. We focus on the fact that an understanding of the regulatory framework and strategic choices may have a significant impact on the bottom line. Projure offers training and assistance in the drafting of contracts and other matters.
A number of businesses in the staffing sector must also comply with regulations governing general application, and must adhere to stipulated employee wage levels, even though they are not bound by collective wage agreements.
In the case of companies that provide staffing and recruitment services, there are fundamental distinctions between
- The hiring-out of employees
- Temporary employment agencies
- Recruitment agencies
Contract organisation and contract drafting, combined with the way in which work is actually carried out, are thus decisive in determining which set of regulations apply.
Temporary employment agencies
If a company intends to hire out its employees, the rules governing temporary employment agencies as set out in the Norwegian Labour Market Act (arbeidsmarkedsloven) will apply. The rules here are very detailed and it is important to be aware that non-discrimination does not apply under all circumstances, e.g., in matters concerning pension and insurance arrangements.
If the company is regarded as a firm engaged in production, which does not intend to hire out its employees, the requirements related to type of business and non-discrimination do not apply. The same applies to the requirement that hiring-in presupposes a temporary post. Nor does the four-year rule apply. Thus, it is vitally important where one draws the distinction between a manufacturing firm and a temporary employment agency.
In Norway, in general terms, companies that are not bound by collective wage agreements are under no obligation to pay a minimum wage. Exceptions arise in situations where statutory regulations stipulate that aspects of certain collective wage agreements apply to all organisations within specific sectors. The law currently operates with four such statutory regulations that in part govern the general application of collective wage agreements:
- collective wage agreement governing commercial cleaning companies
- collective wage agreement governing construction sites in Norway
- The industrial agreement that applies in the shipping and maritime construction industry (the so-called "VO" component)
- Collective wage agreement for workers in the agricultural and horticultural sectors
These rules will apply regardless of whether or not a company provides a temporary employment agency service or hires out its employees. There exists a variety of means of providing staffing and recruitment services (both contract-based and hiring-out) within these sectors, so it is important that these regulations are in place.
- Industrioverenskomsten VO delen for skips-og verftsindustrien
- Tariffavtale for jordbruks- og gartnerinæringene